Piedmont Obtains $250M Loan

ATLANTA-Piedmont Office Realty Trust Inc. has obtained a $250 million unsecured term loan funded by JPMorgan Chase and Bank of America. The loan, which matures on June 28, 2010, will be used to pay down outstanding debt on an existing line of credit that allows the company to acquire additional properties, Raymond L. Owens, executive vice president of capital markets for Piedmont, tells GlobeSt.com.

“In a time of significant tightening in the credit market, this unsecured loan speaks to the financial strength of our company,” said Donald A. Miller, CEO of Piedmont, in a release. “This allows us obvious flexibility as we continue to manage and shape our capital structure and portfolio of properties for our investors.”

One day before obtaining the term loan, Piedmont closed on an acquisition by drawing on its existing revolving line of credit, says Owens. The company gained 100% ownership interest in Rock Spring II LLC, an entity that owned Opus Center at Rock Spring Park II, a class A office building in suburban Washington, DC. Piedmont had acquired the adjoining Opus Center at Rock Spring Park I, owned by a sister entity, at the end of last year, and has now renamed the brand new, vacant buildings Piedmont Pointe I and II.